Question

Rick O'Shea, the only employee of Hunter Furniture Company, makes $30,000 per year and is paid once a month. For the month of January, his federal income taxes withheld are $180, state income taxes withheld are $37, social security is 6.2% on a maximum wages of $106,800, Medicare tax is 1.45%, State Unemployment Tax is 4.2%, and Federal Unemployment tax is .8%, both on a maximum wages of $7,000 per employee. What is the employer's payroll tax expense from Rick's paycheck

Answer 1

Answer: $316.25

Step-by-step explanation:

The taxes paid by the employer are the Social Security taxes, Medicare taxes, Federal unemployment taxes (FUTA) and State unemployment taxes (SUTA).

Rick makes $3,000 a year but is paid monthly.

= 30,000/12

= $2,500

= (6.2% * 2,500) + (1.45% * 2,500) + ( 0.8% * 2,500) + ( 4.2% * 2,500)

= 155 + 36.25 + 20 + 105

= $316.25